How will an employees age affect the appeal of given plan

Assignment Help Management Theories

Reference no: EM131385237

SITUATION
Technical Products, Inc., distributes 15 percent of its profits quarterly to its eight employees. This money is invested for their benefit in a retirement plan and is fully vested after five years. An employee, therefore, has a claim to the retirement fund even if he or she leaves the company after five years of service. The employees range in age from 25 to 59 and have worked for the company from 3 to 27 years. They seem to have recognized the value of the program. However, younger employees sometimes express a preference for cash over retirement benefits.

Question 1 What are the most important reasons for structuring the profit-sharing plan as a retirement program?

Question 2 What is the likely motivational impact of this compensation system?

Question 3 How will an employee's age affect the appeal of this plan? What other factors are likely to strengthen or lessen its motivational value? Should it be changed in any way?

Reference no: EM131385237

Questions Cloud

Create a section in the plan to list all of the policies : create a 2-3-page section in the plan to list all of the policies that you would have for your organization and a brief description of what each policy will contain. After the risks, have been identified within an organization, you must devise a p..

What are the greatest benefits of employee leasing : How does employee leasing differ from using a temporary help agency? What are the greatest benefits of employee leasing?

To what extent should a small firm use old timers : To what extent should a small firm use "old-timers" to help introduce new employees to the workplace? Is it inevitable that newcomers will look to old-timers to find out how things really work?

Explain step-by-step process of conducting dismissal meeting : Describe a step-by-step process of conducting the dismissal meeting. Determine the compensation that the fictitious company may provide to the separated employee.

How will an employees age affect the appeal of given plan : How will an employee's age affect the appeal of this plan? What other factors are likely to strengthen or lessen its motivational value? Should it be changed in any way?

Discuss the cost estimation in software development : Predict the challenges of cost estimation for software development projects where requirements are usually not clear in early stages of the project. Argue whether or not the fluidity of requirements introduced by agile methodologies contributes to..

How contracting with the peo affect employee relationship : How might contracting with the PEO affect employee relationships at Ready Delivery? Is there any chance that his employees' loyalty might be transferred to their new "employer"?

In what ways can servant leadership be considered a vocation : In what ways can servant leadership be considered a vocation? How does servant leadership differ from traditional forms of leadership?

Assess the importance of critical path in project management : Compare and contrast the information that one receives from a Gantt chart, versus that of a PERT diagram.Examine the advantages of using a Gantt chart over a PERT chart and vice versa. Determine when it is appropriate to use one over the other. Jus..

User Account

All Pages